Property Taxes: What Can I Expect in The Home Purchasing Process?by Viki Adams Freelance Writer
One of the most amazing aspects of purchasing a brand-new
home is finally being able to get rid of your old one. While this can be an
exciting time for homeowners, it also comes with its own set of challenges. One
such challenge is property taxes. Let's look at what you need to know about
property taxes and how they work in the home purchasing process.
What Are Property Taxes?
Property taxes are a standard tax for homeowners. You are required to pay these taxes to keep your homeownership privileges up to date with the local county or municipality where you live.
In most cases, property tax rates can be between 0% and 12%. The rate varies depending on how much value the house has and what state it is located in (the higher valued houses are taxed at a greater percentage). It's important to note that counties or municipalities also have their own set of rules regarding taxing properties.
For example, some states only charge property taxes based on "fair market value" minus exemptions from items like disabled veterans' status, elderly people over 65 years old who receive social security benefits, etc.
How Do Property Taxes Work in the Home Purchase Process?
In the home buying process, property taxes will typically be included in the monthly mortgage payment. This is done to spread out the cost of taxes over several years and allows you to budget more easily for them.
For example, if your house has an assessed value or "fair market value" of $200,000, property taxes will likely be between 0% and 12%. If this home's tax rate is set at 12%, it will equate to about $2400 per year ($1800 paid in December with one half month interest due on January 15th).
When looking into purchasing a home, take some time to research what kinds of rates could apply where you live and how much these might affect your housing costs annually. You may also want to speak with other real estate and financing professionals to get their input as well.
Explore property taxes in your area and
how they could affect the cost of ownership.
Research what kinds of rates typically
apply where you live, as well as how much these might affect your housing costs
Speak with other real estate
professionals for advice on this important topic before making a major purchase
decision, such as buying a home.
In many areas, buyers will pay an additional amount to cover
homeowner's insurance, but usually not until after closing. If you're looking
at homes priced under $200K in most regions, then you'll probably be paying a
premium for liability and theft coverage too.
Ensure that if there is any language about including homeowners or car insurance into the mortgage agreement, it matches your own needs.
Why Should I Be Concerned About My Current Property Tax Rate?
You should be concerned about your property tax rates when you're looking to buy a new home because these rates change over time.
If You Want To Know The Property Taxes For Your New Home, Ask
A regional tax attorney can answer questions about how all of these local laws affect you, so get one involved early on during the process. Speak with other real estate professionals, like those who have Myrtle Beach homes for sale at The Trembley Group. The property taxes for your new home will depend on the house's location and other factors such as school district and special assessments that are in effect at this particular address.
There may be additional costs for homeowners insurance or car insurance if included in the mortgage agreement. If there is anything about homeowner's or car coverage connected with the financing, make sure it matches up with your needs first before signing any paperwork!
Created on Jun 2nd 2021 14:28. Viewed 1,303 times.